Maybe things aren’t so bad out there. Or at least they're getting better.
According to a report from MassMutual, Americans are less concerned about inflation than they were in the previous quarter (59% versus 63%), and fewer believe that the economy will worsen in the next three months compared with last quarter (52% versus 57%). Furthermore, the portion who expect the economy to stay the same ticked up, indicating respondents think the economy has bottomed out (24% versus 18%).
Another source of economic optimism in MassMutual’s report is the decrease from 38% last year to 28% this year in the portion of Americans expecting a tax refund who say they would be very inconvenienced if their refund were delayed.
“Many families across the country depend on receiving a tax refund almost as an extra paycheck for the year," said Brian Hartmann, partner at Granite Bridge Wealth Management, part of Advisor Group. "Delays in those checks that are anticipated will be felt more than ever by Americans this year.”
One other piece of good news from the report is that while more than half of Americans are still delaying major purchases in response to inflation, it's fewer than last quarter (55% versus 59%).
“It is uplifting to see a spirit of resilience amongst the American population despite a softening in the U.S. economy and corresponding financial uncertainty,” Mike Fanning, head of MassMutual U.S., said in a statement.
“Staying vigilant by practicing sound financial habits is key to navigating this stubborn inflationary environment," Fanning said. "Consumers who have already taken steps to save and invest wisely may be best positioned.”
Elsewhere in the survey, more reported feeling increasingly confident that a potential recession wouldn't adversely impact their day-to-day finances compared with last quarter (50% versus 42%). Meanwhile, the report showed fewer believe the U.S. is in a recession this quarter (51%) than last quarter (60%).
Finally, the report revealed that nearly half of Americans said they would be able to pay a surprise bill of $400 easily. Younger generations would have the most difficulty in affording this expense, the survey showed.
The survey is based on responses from 1,000 American adults and an additional 500 residents of Massachusetts.
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